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Bond yields trade higher on Friday

20 Sep 2024 Evaluate

Bond yields traded higher on Friday as a report by S&P Global noted that India is set to become the third largest economy and transition to the upper-middle-income category by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal. India posted GDP growth of 8.2 per cent in FY2024, exceeding the government’s earlier estimate of 7.3 per cent, sustained reforms are crucial for India’s economic momentum to continue.

In the global market, Treasury yields rose on Thursday as the start of the Federal Reserve's first rate-cutting cycle in more than four years whet investors' risk appetite. Furthermore, U.S. crude oil rose more than 1% on Thursday, one day after the Federal Reserve slashed interest rates for the first time in more than four years and as tensions in the Middle East continued to escalate. 

Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 6.88% from its previous close of 6.75% on Thursday.  

The benchmark five-year interest rates were trading 12 basis points higher at 6.79% from its previous close of 6.67% on Thursday.

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